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What I Did this Summer
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"October 2005 The first Summer Founders Program has just finished. We were
surprised how well it went. Overall only about 10% of startups
succeed, but if I had to guess now, I'd predict three or four of
the eight startups we funded will make it. Of the startups that needed further funding, I believe all have
either closed a round or are likely to soon. Two have already
turned down (lowball) acquisition offers. We would have been happy if just one of the eight seemed promising
by the end of the summer. What's going on? Did some kind of anomaly
make this summer's applicants especially good? We worry about that,
but we can't think of one. We'll find out this winter . The whole summer was full of surprises. The best was that the hypothesis we were testing seems to be
correct. Young hackers can start viable companies. This is good
news for two reasons: (a) it's an encouraging thought, and (b) it
means that Y Combinator, which is predicated on the idea, is not
hosed. Age More precisely, the hypothesis was that success in a startup depends
mainly on how smart and energetic you are, and much less on how old
you are or how much business experience you have. The results so
far bear this out. The 2005 summer founders ranged in age from 18
to 28 (average 23), and there is no correlation between their ages
and how well they're doing. This should not really be surprising. Bill Gates and Michael Dell
were both 19 when they started the companies that made them famous.
Young founders are not a new phenomenon: the trend began as soon
as computers got cheap enough for college kids to afford them. Another of our hypotheses was that you can start a startup on less
money than most people think. Other investors were surprised to
hear the most we gave any group was $20,000. But we knew it was
possible to start on that little because we started Viaweb on
$10,000. And so it proved this summer. Three months' funding is enough to
get into second gear. We had a demo d"
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